FILE - President Joe Biden speaks during a meeting with Prime Minister Petr Fiala of the Czech Republic in the Oval Office at the White House, April 15, 2024. Bidens latest plan for student loan cancellation is moving forward as a proposed regulation, offering him a fresh chance to deliver on a campaign promise and energize young voters ahead of the November election.
Conservative opponents, who see it as an unfair burden for taxpayers who didn’t attend college, have threatened to challenge it in court.last week, saying it would provide “life-changing” relief. He laid out five categories of people who would be eligible for help. It would automatically cancel loans for those who went to colleges or programs considered to have low financial value. Borrowers would be eligible for cancellation if they attended a program that leave graduates with earnings no better than those with a high school diploma, for example, or programs that leave graduates with large shares of debt compared with their incomes.
The department said the hardship proposal will offer cancellation to borrowers who are at high risk of defaulting on their loans along with those who face other hardships, including high medical and caregiving expenses. That proposal will mirror one agreed upon by outside experts during the rulemaking process, the agency said.